One of the largest digital currency asset managers in the world, Grayscale Investments, announced the creation of a smart contract fund that would invest in Ethereum competitors, including Cardano (ADA), Solana (SOL), Avalanche (AVAX), and many others, as its first investment.
— Grayscale (@Grayscale) March 22, 2022
With the introduction of “GSCPxE,” Grayscale’s 18th investment product, the company now controls seven different smart contract currencies. One significant benefit of the GSCPxE is that investors will not be forced to make a decision.
The following is how the weights are distributed between the assets: Cardano (ADA) tokens are now in circulation at 24.63 percent, followed by Solana tokens at 24.27 percent, Avalanche tokens at 16.96 percent, Polkadot tokens at 16.16 percent, and Polygon tokens at 9.65 percent, Algorand (ALGO) at 4.27%, and Stellar (XLM) at 4.06%.
The emergence of the cause
Boosted by its supremacy in the rapidly expanding DeFi and NFT industries, Ethereum made a splash in the cryptocurrency world last year.
The deployment of the game-changing EIP-1559 update, which added a system that burns a portion of the gas costs, resulted in the addition of even more rocket fuel.
CoinDesk Managing Director Jodie Gunzberg observed that Ether’s record rise over the previous year has fuelled investor interest in smart contract alternative blockchains.
Gunzberg is a Certified Financial Analyst (CFA). Gunzberg claims that many investors have allocated to Ethereum because of its phenomenal rise over the last year, and as a result, there is a need to get exposure to the remainder of the Smart Contract Platform industry.
Grayscale wants to make the new investment product available on secondary markets like it has done with many of its other investment products in the past. For now, the fund is only available to qualified individuals and accredited investors.